Flowserve
Market Cap
US$4.1b
Last Updated
2020/08/14 12:20 UTC
Data Sources
Company Financials +
Executive Summary
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Flowserve's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FLS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.2%
FLS
4.1%
US Machinery
0.5%
US Market
1 Year Return
-24.9%
FLS
18.2%
US Machinery
18.7%
US Market
Return vs Industry: FLS underperformed the US Machinery industry which returned 18.2% over the past year.
Return vs Market: FLS underperformed the US Market which returned 18.7% over the past year.
Shareholder returns
| FLS | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.2% | 4.1% | 0.5% |
| 30 Day | 3.7% | 8.0% | 4.9% |
| 90 Day | 41.8% | 34.6% | 19.8% |
| 1 Year | -23.1%-24.9% | 20.5%18.2% | 21.2%18.7% |
| 3 Year | -11.6%-16.6% | 31.7%23.1% | 46.2%36.8% |
| 5 Year | -22.5%-29.2% | 85.3%63.3% | 85.3%65.1% |
Price Volatility Vs. Market
How volatile is Flowserve's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 months ago | Simply Wall St
Is It Too Late To Consider Buying Flowserve Corporation (NYSE:FLS)?4 months ago | Simply Wall St
Flowserve Corporation (NYSE:FLS) Is About To Go Ex-Dividend, And It Pays A 3.9% Yield4 months ago | Simply Wall St
Has Flowserve Corporation (NYSE:FLS) Been Employing Capital Shrewdly?Valuation
Is Flowserve undervalued compared to its fair value and its price relative to the market?
41.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FLS ($31.81) is trading below our estimate of fair value ($53.96)
Significantly Below Fair Value: FLS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FLS is poor value based on its PE Ratio (28.4x) compared to the US Machinery industry average (26.9x).
PE vs Market: FLS is poor value based on its PE Ratio (28.4x) compared to the US market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: FLS is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: FLS is overvalued based on its PB Ratio (2.5x) compared to the US Machinery industry average (2.3x).
Next Steps
Future Growth
How is Flowserve forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
22.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FLS's forecast earnings growth (22.1% per year) is above the savings rate (2.2%).
Earnings vs Market: FLS's earnings (22.1% per year) are forecast to grow slower than the US market (24.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FLS's revenue (1.3% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: FLS's revenue (1.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FLS's Return on Equity is forecast to be low in 3 years time (13.2%).
Next Steps
Past Performance
How has Flowserve performed over the past 5 years?
-15.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FLS has a large one-off loss of $121.1M impacting its June 30 2020 financial results.
Growing Profit Margin: FLS's current net profit margins (3.8%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: FLS's earnings have declined by 15.6% per year over the past 5 years.
Accelerating Growth: FLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FLS had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Machinery industry average (-13.5%).
Return on Equity
High ROE: FLS's Return on Equity (9.1%) is considered low.
Next Steps
Financial Health
How is Flowserve's financial position?
Financial Position Analysis
Short Term Liabilities: FLS's short term assets ($2.4B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: FLS's short term assets ($2.4B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: FLS's debt to equity ratio (80.8%) is considered high.
Reducing Debt: FLS's debt to equity ratio has reduced from 95.4% to 80.8% over the past 5 years.
Debt Coverage: FLS's debt is well covered by operating cash flow (20.9%).
Interest Coverage: FLS's interest payments on its debt are well covered by EBIT (8.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Flowserve current dividend yield, its reliability and sustainability?
2.51%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FLS's dividend (2.51%) is higher than the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: FLS's dividend (2.51%) is low compared to the top 25% of dividend payers in the US market (4.31%).
Stability and Growth of Payments
Stable Dividend: FLS's dividends per share have been stable in the past 10 years.
Growing Dividend: FLS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (69.7%), FLS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FLS's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Robert Rowe (49 yo)
3.33yrs
Tenure
US$8,681,866
Compensation
Mr. Robert Scott Rowe has been Interim President of Flowserve Pumps Division at Flowserve Corporation since May 29, 2020. Mr. Rowe has been Chief Executive Officer and President of Flowserve Corporation si ...
CEO Compensation Analysis
Compensation vs Market: Robert's total compensation ($USD8.68M) is above average for companies of similar size in the US market ($USD5.69M).
Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.33yrs | US$8.68m | 0.089% $ 3.7m | |
| VP of Investor Relations & Treasurer | 7.83yrs | US$953.89k | 0.013% $ 521.3k | |
| Senior VP & Chief Sales Officer | 3.83yrs | US$1.60m | 0.037% $ 1.5m | |
| Senior VP & Chief Human Resources Officer | 2.33yrs | US$1.69m | 0.0057% $ 234.3k | |
| Senior VP & CFO | 0.50yr | no data | no data | |
| VP & Chief Accounting Officer | 0.17yr | no data | no data | |
| Vice President of Marketing & Technology | 1.5yrs | no data | no data | |
| Senior VP | 2.17yrs | no data | 0.0039% $ 161.5k | |
| Vice President of Corporate & Marketing Communications | 6.83yrs | no data | no data | |
| President of Flow Control Division | 4.92yrs | no data | 0.029% $ 1.2m | |
| VP & Chief Transformation Officer | no data | no data | no data | |
| President of Aftermarket Services & Solutions | 1.08yrs | no data | 0.0013% $ 51.8k |
2.3yrs
Average Tenure
52yo
Average Age
Experienced Management: FLS's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.33yrs | US$8.68m | 0.089% $ 3.7m | |
| Independent Director | 1.83yrs | US$240.04k | no data | |
| Independent Non-Executive Chairman | 3.25yrs | US$350.04k | 0.013% $ 550.7k | |
| Independent Director | 12.58yrs | US$235.04k | 0.0040% $ 165.2k | |
| Independent Director | 13yrs | US$235.04k | 0.0082% $ 339.1k | |
| Independent Director | 8.75yrs | US$240.04k | no data | |
| Independent Director | 3.25yrs | US$230.04k | 0.0020% $ 82.0k | |
| Independent Director | 0.67yr | US$5.44k | 0.00077% $ 31.9k | |
| Independent Director | 1.83yrs | US$235.04k | no data |
3.3yrs
Average Tenure
59yo
Average Age
Experienced Board: FLS's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Flowserve Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Flowserve Corporation
- Ticker: FLS
- Exchange: NYSE
- Founded: 1912
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$4.140b
- Shares outstanding: 130.16m
- Website: https://www.flowserve.com
Number of Employees
Location
- Flowserve Corporation
- 5215 North O'Connor Boulevard
- Suite 2300
- Irving
- Texas
- 75039
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FLS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1980 |
| FWV | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1980 |
| 0IQE | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1980 |
| FLS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1980 |
| F1LS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. The c ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/14 12:20 |
| End of Day Share Price | 2020/08/13 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.